Saturday, February 13, 2010
SRI LANKA - ANOTHER GREAT NEWS FOR SRI LANKAN TEA PLANTATION COMPANIES
Feb. 12 (Bloomberg) -- Top grade African tea prices climbed 7.3 percent to near-record levels this week at the world’s biggest auction of the leaf in Mombasa, Kenya, as unfavorable weather damaged crops, a broker said.
Tea sold for as much as $3.09 a kilogram (2.2 pounds) at auctions on Feb. 8 and 9, compared with $2.88 last week, Africa Tea Brokers Ltd. said in an e-mailed report today. Average tea prices rose to a record $3.12 a kilogram last year.
Inclement weather cut tea production in Kenya, the world’s biggest black-tea exporter, to 314 million kilograms last year, the lowest since 2006, exacerbating a global shortage. The gap may widen this year as a rebound in output from Africa, Sri Lanka and India fails to compensate for even quicker demand growth, McLeod Russel India Ltd., the world’s biggest tea- plantation company, said last month.
“The crop continues to decline” in Kenya, ATB said, adding that drier, warmer and windy weather was experienced in some tea-growing areas. The average price for top grades has traded a third higher so far this year than in the same period a year ago, it said.
Of the 9.08 million kilograms offered at the sale this week, 97 percent was sold. At the next auction, 7.96 million kilograms will be sold and 7.14 million kilograms the week after, according to ATB’s report.
source - www.bloomberg.com